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Stock & Options Trading

Snap Shot Trading Should be Used for Equity Swing Trades, too

September 4, 2016 — by Troy Noonan0

Look for Market Treasures in Overlooked Places

In the last couple posts we looked at how we can swing trade slower timeframe charts without having our trading take over our lives.  With this example, I wanted to show you how you can use the same principals to swing trade stocks, ETFs and options.

Check out this example of GOOG.  This is a great trading stock but at $775 per share (or there about), it is out of reach to many traders.  With the CPT, you can use the trade setups you see on the chart to trade options.  The entry tells you what strike price to buy; something slightly in the money with enough time remaining.  At each target, you could exit a part of your position.  When it’s a long trade you buy slightly in the money call options.  When it’s a short trade, you merely buy slightly in the money put options.  Sometimes a trade will take a loss so if it does happen to hit its stop, you sell your option and recapture some of your premium.  We never hold options to expiration.  There’s no reason to do that.  Like this, you can contain your risk and enhance your risk:reward ratios.

This example is  a unique 195 minute chart using ‘natural hours’ instead of session hours.  What makes this chart so different is that if you use session hours, you basically are dividing the session by two, giving you two bars per session.  You can certainly use a chart like that and get twice the frequency as a daily chart would give you.  Using Natural Hours, as with this chart example, you actually get 3 bars.  The first bar is only 15 minutes, so at 9:45 am, you look to take trades.  The 2nd bar is 195 minutes and the 3rd bar is 180 minutes (the remainder of the first 15 minute bar.  Different, right?  We like to be different.

Look to take trades on this GOOG chart 15 minutes after the market opens.  But slightly in the money calls and puts with enough time (1 month is about right, give or take) and then scale out at each target for double and triple digit percentage gains.

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There are many advantages of using this type of chart.  The most obvious is that you let the market settle in for 15 minutes before placing trades.  Also, you can get your trading done quickly, with a brief ‘snap shot’ window of time.  Also, we don’t want to do what everyone else is doing.  We want to go our own way and find our treasure under the stones that everyone else is overlooking.

The Counter Punch Trader will be on the market again soon.  Be on the lookout.  We will be announcing how you can register for the next upcoming webinars here on this blog very soon.

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Forex TradingStock & Options Trading

Quit Positive on Most Sessions for Ongoing Consistent Profits

August 9, 2016 — by Troy Noonan0

If you could quit positive on most sessions, you can enjoy ongoing success as a trader.

In the last post, we looked at some examples of how we can achieve ongoing consistent profits with a one and done tradeplan. We talked about how you can still trade more, just trade a different tradeplan.  In fact, that’s a great way to go because you can gain additional benefit by adding the strength of diversification to your trading.  It still allows you to benefit with the less is more idea while being able to trade more too.  You can have your cake and eat it too.

A variation to yesterday’s theme of trading less for greater ongoing consistent profitability is to quit with the first winning trade and or a positive result within a certain window of time.  Quitting with a win and a positive result is what we call the Power of Quitting.  There are many ways to use this idea.

With a good forex daytrade plan for example, you can trade from 8:30 et until 11 or 12 noon.  You would quit as soon as you won and were profitable.  On the rare occasion that you were unable to get positive, you still quit with minimal trades, which controls drawdown and keeps it manageable.  Tomorrow will be another day.  As long as you can quit positive a majority of the time, you should be able to grow equity.  Using the backtesting techniques we teach, you can determine this before you ever risk real money.

A window of time like what is suggested above might allow for anywhere between one to three trades, possibly a fourth.  Forex daytrading plans can be very effective with this idea.  Moreover, we can take advantage of the flexibility that forex provides regarding position size and scale out 25% at three different targets while trailing the final part of the position for the occasional huge move.  We have to be mindful of spread so any target that is too small, we just ignore and exit that part of the trade at the next target.  Flexible thinking is important too.  I like to think of the market as an unruly dance partner.  So long as I can flow with its rhythm and let price action ‘speak to me,’ I can use my strategy to achieve my objective of ‘taking what the market wants to give me.’  It’s a different way of thinking but has proven to be a great way to enjoy steady, ongoing profits.

In the below example, the EURUSD 5 minute chart (a great chart to daytrade with the CPT) had a couple targets that were just too small to bother with.  The trade ended up profitable in context to the personality of that particular session.  Instead of exiting at T1 and T2, those parts came off at T3, + 11 pips.  The final 25% of the trade was able to pick up + 20 pips with the trailer.

EURUSD gave us a good example of quitting positive after a winning trade. It happened to be the first trade of the day for the US session start time, 8:30 et, and is a good example of taking what the market wants to give while being able to quit with positive results most of the time.

080716_eurusd5min

On the Friday Session, the first trade of the day didn’t come until 11:10, triggering in at 11:30.  It would have been worth the wait as it went up to hit all three targets (larger than the prior example) for another great One and Done session.

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You can trade stock charts much the same way as forex, scaling out 25% at each target and trailing the remainder.  You can use the stock chart setups to trade options.  In this example, you could daytrade weekly options.  Look for slightly in the money options using the stock entry price to guide you.  Exit at each target, going flat when the trailing stop is hit.

Another great example of a One and Done plan that is easily testable.  This is an AAPL 377 tick chart but it could be a number of other charts and symbols.  You can trade options using the stock setups for greater leverage and risk control too.

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Notice the less is more theme working across the board on every example we look at.  Do we need to trade more?  Not if we want to consistently grow equity, position size and steadily increase wealth.  Why else trade if not for that?  It’s all about the tradeplan.  In training you can learn how to quickly assess a chart and whether you can be successful with the less is more approach.  By using techniques like the ‘Fast Test’ and powerful tools like the UTA, you can custom make the best tradeplans that fit your personal needs and style.

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Forex TradingFutures TradingStock & Options Trading

The Simple Truth About Successful Trading

August 7, 2016 — by Troy Noonan0

The Simple Truth About Successful Trading will most likely surprise you.

Here’s the simple truth about being able to trade profitably on a consistent basis.  If you can quit each session with a positive result on as few trades as possible, while also keeping drawdowns low when losing trades happen (and they will, no matter what), then a trader can consistently grow equity and enjoy ongoing success.

It requires a different mindset than most traders tend to have.  Most traders try to get out of the market what THEY need or want.  We have found it far more effective to instead, take from the market what it wants to give us.  It’s a different mindset.  Another big misnomer is that if a trader only trades more, that trader will make more money.  We have found the contrary to be true.  The fewer trades one takes will typically achieve the best results.  Inexperienced traders tend to overlook two important things about trading too much:

  1. Trade costs are very real and will eat away at your profits.  They come in several forms, commission being the least.  Spread costs, slippage, fatigue and errors due to a variety of mistakes are what kill your profits the most.  It’s like a poker table that takes too large of a rake each pot.  Most poker players don’t realize how dramatically this will affect their ability to gain ongoing positive results and the same is even more true with trading.
  2. Hanging on to one’s profits.  Taking what the market wants to give is a way to steadily grow your account while taking advantage of consistent trading opportunities.  Markets cycle back and forth between profitable moves and low range, unprofitable periods of time.  Giving your profits back to the market due to overtrading is not the way to consistent trading profits.

The best strategies put the odds on your side with each setup.  Applying good setups to well tested tradeplans will allow you to use the strategy to build an ongoing, profitable business that consistently grows.  Then, it’s all about a solid money management plan, executing the plan with discipline, and allowing the 8th wonder of the world, the power of compounding, to do its magic.

A great example is a simple plan that only takes one trade per day, win or lose.  It’s easy to test and easy to trade.  It doesn’t take over your life and is a great way to grow equity.  Over time, as one’s account grows, so does his/her position size.  Eventually the trader can hit his maximum position size while keeping the risk very small as a ratio to available trade capital.  That’s the secret to success.  It’s really quite simple.

Soybean Futures is one such example.  Taking just one trade per day, Soybean futures have been able to quit with a positive result 20 out of the last 22 sessions, often finishing in just a few minutes per session.

Being able to quit positive most of the time, with one trade per day win or lose, is a great way to grow equity and control drawdown.  It never ceases to surprise me how many traders DON’T do this.

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If you want or need to trade more, just focus on another ‘one and done’ tradeplan.  Do we really need more trades than the one shown below?

The TF was one and done on the same day, with a trade that offered plenty of profit opportunity and was finished within just 10 minutes of trading.

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You can grow your equity with a tradeplan that wins most of the time with very few trades.  Take greater advantage of the odds that your strategy gives you by keeping your profits when you make them.  Even the best strategies will have losing trades and losing sessions so ask yourself, how much better off you would be if you were able to avoid most of them.  In the next post, we’ll explore this theme further with a look at forex and stock/options trading.

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Forex TradingFutures TradingStock & Options Trading

Momentum Bars Make for Great Trading Charts

August 1, 2016 — by Troy Noonan0

Momentum Bars are Worth Your Attention as a Home Trader

Have you ever considered trading with Momentum bars?  Time based charts and tick charts are not the only charts you should be paying attention to. Range bars give us a way of looking at charts that can really give us a big edge.  Momentum bars are simply a type of range bar.  In essence, the price bar is based on the price range in a market, not how much time has passed (time based chart) or how many orders have passed through the market (tick chart).

Counter Punch Trader loves price action and Range/Momentum bars show that to us in a very clear way.  Three markets (there are plenty of others) that we really like trading with Momentum bars are Soybeans, Heating Oil and the Russell eMini.  Check out these three trades from today’s session as we head into the Dog Days of August.  Notice how clean the setups are and how tradeable the chart looks.  Each of these three markets were able to hit their tradeplan goals with the very first trade and were done very quickly.  That’s what we love.  To be able to quit positive and finish trading fast and early leaving the rest of the day to enjoy and to pursue other things.

Soybeans hits all of its targets and was one and done today using a 5 tick Momentum Range Bar.   We use this chart every single day with Soybean Futures which is a great trending commodity.  Soybean futures trade like the Es, $50 per point, $12.50 per tick.

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Heating Oil Futures also fired on all cylinders hitting each of its targets while picking up a nice trailer. We like a 20 tick Momentum bar with this market.

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This 8 tick Momentum Bar with the Russell eMini makes this market more reasonable for many home daytraders.  Profitable, too.  Each point is worth $100 per contract.  Today it too was one and done, hitting all its targets and a trailer for a sizable gain.  Notice how clean and straight forward this chart looks.  As with all range bars, each bar is the same size, in this case, 8 ticks.  As the 8 tick range is exceeded, an new bar prints.  Regardless of what market you trade, forex, futures, stocks, etc., who wouldn’t want to catch a short like this?

The Russell eMini, using this 8 tick momentum bar was One and Done today, hitting it out of the park with a nice running trailer too, all within 12 minutes.  

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Stock & Options Trading

Don’t Overlook Stock and ETF Charts; CPT Works GREAT for Options Trading Too

June 30, 2016 — by Troy Noonan0

The Counter Punch Trader works great with stock, ETF and options trading.

I get many questions regarding stocks, ETFs and options trading with the CPT.  The answer is YES it works great!  Stock and ETF charts are some of the most profitable charts to trade but to trade straight shares, you can’t get the great leverage you would get with futures or forex.  There is a simple solution though.  Trade with options.  You can buy slightly in the money call options for long trades and puts for short trades.  Just use the CPT setups on the stock chart to guide your trades.  It’s quite easy actually.  Only takes a little bit of practice.

Of course you want to make sure you choose good stocks and ETFs to trade.  Just stick to the names with the most volume. There are plenty of good choices.  The below image is taken from my Think or Swim platform.  We use a special trend indicator filter to help us with our trade decisions, called Trend Mode.  When the line is blue, we only take long trades.  When it is red, we only take short trades.  Check out the last several trades on AAPL.  I drew arrows to indicate the setups and lines to show you all the targets that you can take profits at.  Of course this is all taught in great detail with the training but you can see how straight forward it is.  Simple Calls and Puts typically return double and triple digit percentage gains.

Check out this simple daily chart of AAPL on TOS.  You can buy simple in the money call options for some fantastic gains.  I drew arrows to indicate the setups and lines to show you all the great targets to take profits.  All the details on how to trade a chart like this are taught in great detail with the Cpt training that comes with membership.

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Here’s an example of some recent GOOG trades using a 195 minute chart.  You an use a TOS chart or this Tradestation chart and trade with any broker you want.  It also works great on Ninja Trader.

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Forex TradingFutures TradingStock & Options Trading

Brexit a Boon for Traders

June 24, 2016 — by Troy Noonan0

Whether you are on the Brexit side of things or the Bremain side of things, now that the people have spoken (we can debate if it was more about the weather than anything else, or a number of many different arguments — but we won’t), for traders, this could be just what the doctor ordered to finally wake up what has been a pretty anemic market so far this year.  I, for one, and looking forward to greater volatility and larger gyrations in the markets which I think will prove to be a very exciting and profitable time for traders.  Markets will attempt to digest the ramifications of this historic referendum and the ensuing repercussions and reactions will provide plenty of fuel to push prices around on all our favorite charts.

Today was going to be one of the largest volume trading days of the year regardless of Brexit, due in part to the Russell Rebalancing, which tends to be a big trading day.  We can’t draw conclusions because of the great swings that occurred over the last 24 hours.  But I do think it’s safe to assume, especially in light of the fact that there are still HUGE decisions to be made in the not too distant future (I heard there’s a fairly significant election coming up in November) and that the summer tends to usher in the most volatile trading season of the year shortly after, that we can look forward to some great trading and it would behoove all would-be profitable traders to be prepared to take advantage of the opportunities that will be present in the markets for the foreseeable future.  Just my humble opinion.  🙂

DAX Futures the Day of the Brexit Vote, 6/23.  Notice the price level and then compare that to what happened the next day when the results were in.

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DAX Futures After the Vote, 6/24

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Today’s YM Session was a Big Winner

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All our favorite markets ended with strong profitable results today, whether long or short.  All of this points to the fact that regardless of the direction, when the markets move, the trade profits are there.  I view the Brexit Referendum as a signal of good times to come for traders like us, so long as we’re prepared to trade and remain centered within our professional approach and disciplined within our tradeplan rules and goals.

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Forex TradingFutures TradingStock & Options Trading

Winning Trades Across the Board — May Trading has Arrived!!

May 6, 2016 — by Troy Noonan0

Counter Punch posted a strong week with winning trades across the board.

Counter Punch posted a strong week with winning trades across the board.  I’ve been talking about how much I look forward to May trading and this first week certainly didn’t disappoint.  Everyone has heard the saying, “sell in may, go away.”  For me, I’d rather go away Jan Thru April and then come back in May!  Whether we’re selling or buying, the trading is typically real good.  Especially for many of our favorite markets.

For whatever reason, after nine years of moderating a live traderoom, the Russell eMini seems to take over when May comes around.  This first week was full of winning trades and our 377 tick chart came alive, leaping to all new equity highs, winning 5 sessions in a row.  In fact our tradeplan only had one losing trade all week.

Check out today’s trade that had this plan quitting one and done to end the week with many winning trades and strong gains

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Here’s a screen shot of this week’s Russell eMini Trades.  When looking at this, keep in mind that I am tracking 4 positions per trade, T1, T2, T3 and a Trailer.  4 line items is actually just one trade.  Check out the time stamp of the setup bar in the 4th column to distinguish each trade.  Notice how 4 of the 5 sessions only have one trade.  That’s because the strategy tradeplan hit its goals and was ‘one and done’ on those sessions.  Only yesterday’s session required more trading.  We finished that session with three trades.

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Find out more here

 

Stock & Options Trading

Swing Trading Stocks with CPT — Lots of Options

March 22, 2016 — by Troy Noonan0

This swing trade chart is interesting, unique and gives a lot of great trade setups. What I like about it is that the first bar closes just 15 minutes after the session open, which gives us time to organize our options trades.

Swing trading stocks and / or trading options using the setups on the stock’s chart offers plenty of opportunities to rake in huge percentage gains.  Once you learn the strategy and the basic approaches that we teach in the training, you will find endless profitable trades and great trading charts.

One chart that I think is a great timeframe to trade is the 195 minute chart.  The way I have this chart set up, you get three bars per session:

  • a 15 minute bar
  • a 195 minute bar
  • a 180 minute bar

This swing trade chart is interesting, unique and gives a lot of great trade setups.  What I like about it is that the first bar closes just 15 minutes after the session open, which gives us time to organize our options trades.  Notice the setups look the same as any other CPT chart.

This GOOG chart just won its last three trades, with a new long looking like it wants to trigger in tomorrow.  With charts like this, you can scale out a percentage of your trade at each target, and exit the final part with the trailer.  The dark blue line is showing a custom trailing indicator that tested well on this particular symbol and timeframe.  Trading simple, directional in the money options would have yielded double and triple digit percentage gains in a very short time.

Check out the last three winning trades in a row on GOOG and this unique 195 minute chart

032116_GOOG

To find out more, and to see a live in the market demonstration of the CPT, make sure to join us for a one day only 24 hour FLASH Sale of the Counter Punch Trader.  

Register now at your most convenient time slot

Thursday, March 24th @ 12pm ET, 9am PT, 4pm GMT
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Thursday, March 24th @ 6pm ET, 3pm PT, 10pm GMT

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Stock & Options Trading

The CPT Way of Trading; Taking Advantage of the Larger Moves in the Market

March 17, 2016 — by Troy Noonan0

With the Counter Punch way of trading, we learn how to spend minimal time daytrading a variety of different markets. What you may not be aware of is that CPT is a very effective swingtrade and longer term position trade strategy as well.

With the Counter Punch way of trading, we learn how to spend minimal time daytrading a variety of different markets.  What you may not be aware of is that CPT is a very effective swingtrade and longer term position trade strategy as well.  Best of all, you really don’t have to learn anything new.  We use the same way of trading.  In this chart example, I chose a chart that is close to all of us because it effects us all each and every day — the cost of oil.  We daytrade crude oil futures every day.  But you can take advantage of this great trading volatile market with ETFs and simple swingtrading.

The USO is an ETF of US Oil Stocks.  It trades millions of shares per day.  It is a very low cost stock at this point, currently in the $10 per share range.  When the cost of oil was undergoing its recent historic drop in price, it would have been easy to trade it to the downside, with limited and controlled risk, clear and precise trades right on the chart, simply by buying slightly in the money, quality put options.  No fancy option spreads necessary. Nothing difficult to learn.  All trades fully planned in advance with clear rules to follow, etc.  The CPT way of trading, in other words.

Now that it seems that oil may have put in a bottom, or is somewhere in the bottoming process, we can see nice long trades emerging.  Again, nothing new to learn. Same way of trading, etc.

Check out the recent long trade.  You can clearly see the entry, targets, stop, and the way the trade is managed as the price progresses in our direction.  This trade could be any trade on any chart.  It looks and behaves the exact same way.  In fact, all I did was copy another chart and change the symbol.  CPT is dynamic, adjusting to the chart and market conditions.  Check it out.

031716_USO

Of course this in just one example, but it is a model of a great way of trading that can be applied to just about any chart that is worth your time and effort.  Change the symbol to the Crude Oil futures daytrade chart, or the Dow eMini, or any number of forex charts and it would look the same, behave the same and trade the same.  It’s the CPT way of trading and it is highly effective and dependable.

Stay tuned for our next Counter Punch Trader Release, coming soon!

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Stock & Options Trading

Check out This Interesting Swingtrade Chart

January 27, 2016 — by Troy Noonan0

This interesting timeframe gives you more frequent swingtrades than a typical daily chart. The way we have it set up is to give us 3 bars per day; the first bar is a 15 minute bar, the 2nd bar is a 195 minute bar and the final bar in a session is a 180 minute bar.

This interesting timeframe gives you more frequent swingtrades than a typical daily chart.  The way we have it set up is to give us 3 bars per day; the first bar is a 15 minute bar, the 2nd bar is a 195 minute bar and the final bar in a session is a 180 minute bar.  It produces some excellent trades on many different stock and ETF charts.

With the flexibility of options, you can take advantage of the primary setups AND the additional ‘extra’ setups.  Each option has a unique strike price and expiration date making each a unique trade unto itself.  You manage each one independent of the others.

This chart of a leveraged Gold Miners ETF shows 5 finished trades, all quite profitable, and a current trade that is still on progress.  This ETF trades millions of shares per day, which is what you want to look for and the CPT can take full advantage of this chart, as you can see, using very low cost ‘in the money’ options; calls for longs and puts for shorts.

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To learn more, register for one of our upcoming webinars happening this coming week.

Wednesday, February 3rd @ 12pm ET/9am PT/5pm GMT
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Wednesday, February 3rd @ 6pm ET/3pm PT/11pm GMT

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Thursday, February 4th @ 10am ET/7am PT/3pm GMT

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